Goa’s IT policy offers attractive incentives for local Start-Ups

GOANEWS DESK, PANAJI | 01 January 2016 19:45 IST

The new Information Technology Investment Policy of Goa government is not only aiming at inviting outside IT companies to Goa but promoting Goan young talent through lots of incentives, especially for start-ups.

The policy released by Chief Minister Laxmikant Parsekar yesterday aims at attracting 10 leading Information Technology (IT) and Information Technology Enabled Services (ITES) as well as 5 leading Electronics System Design and Manufacturing (ESDM) units.

Through this, the state is trying to achieve not less than 15,000 direct and indirect employments.

Incentives announced in the policy include 100 per cent exemption in stamp duty, central sales tax, entry tax, electricity duty and zero rate of tax for transactions effected by units from Domestic Tariff Area.

The policy also assures several land related incentives by making land available at subsidised rates, land on lease for 30 years with a lease rent at 2% for the first 5 years and 5% for the next 10 years.

INCENTIVES FOR LOCAL EMPLOYMENT

Each IT unit generating local employment is being offered reimbursement of 10% of the salary paid with a ceiling of Rs 80 lakh per year, for the first 3 years.

The reimbursement for a unit set up by a local entrepreneur however would be 15% of the salary paid to the local youth.

Similarly, all units that complete 3 years of operations will be entitled to direct benefit of Rs 5 lakh, on incremental recruitment of 100 heads of local employment.

INCENTIVES FOR START-UPS

Start-up companies set up by youngsters in the incubation centres of the government will have no rental while waiving internet bandwidth to the limit of Rs 1 lakh per annum, for the first 5 years.

In addition, the government will offer them seed capital of Rs 2 lakh.

In addition, the policy has also announced incentives for the start-up units as well as other units set up anywhere in Goa.

Such units will get all the incentives on par with other big IT units as well as reimbursement of 10% of salary for the first 3 years.